Some Dallas City Council members were ready last month to take a vote once and for all on whether short-term rental homes could continue operating within residential neighborhoods.
It didn’t happen.
In fact, the council gave city staff a lot more work to do, prompting City Manager T.C. Broadnax to suggest that staff prepare another briefing.
In a memo issued to City Council members last week, Broadnax said staff advised him that the review and analysis will be complete toward the end of May and “they will be prepared to brief City Council on June 7.”
City Council elections are Saturday, May 6, with runoffs in some races set for June 10.
Recommendations And Data Collection
Interested parties can peruse the daltxrealestate.com archives for the years-long saga of STRs, watch the most recent seven-hour City Council briefing on the matter, or hear how the City Plan Commission came to its recommendation of the “Keep It Simple Solution.”
To break it down, a majority of the council has shown interest in regulating and punishing neighborhood STRs where nuisances and criminal activity are reported.
Some elected officials have suggested STRs should operate only in districts where hotels are allowed. Some have suggested a hybrid solution through which neighbors can petition for an overlay district to ban STRs from their neighborhoods but not impact other areas where they’re operating legally and providing tax revenue.
It was clear from the council’s April 14 briefing that city officials want to immediately address the rogue STRs that have taken over some neighborhoods. But they don’t have comprehensive data, and a citywide neighborhood ban could be expensive and difficult to enforce.
We asked a neutral party — Phil Crone, executive officer of the Dallas Builders Association — what he thinks of STRs. The Dallas BA has not taken a stance on the matter, he said.
“However, we support all kinds of housing and permissible land use that accommodate as many people as possible,” Crone said. “Personally, I’ve never understood why Dallas has been so regressive on short-term rentals and [accessory dwelling units], especially when so many other large cities are moving forward on them. They provide valuable housing solutions and additional income that can offset rising property tax burdens while, in turn, stabilizing neighborhoods.”
Further Consideration on Short-Term Rentals
The matters with which city staff has been asked to provide further analysis include, according to an April 14 memo from City Manager Broadnax:
- Zoning: Based on Council’s discussion, Planning and Urban Design is analyzing the possibility of alternatives to City Plan Commission’s recommendation and the associated processes. Additional research on other land-use solutions, zoning options, maps showing multi-family zoning districts, and analysis of existing STRs within zoning and Council Districts are also being prepared.
- Enforcement: Code Compliance will respond to questions and prepare options regarding the feasibility of launching in six months instead of the 12-month model presented. To respond to Council Member questions, Code Compliance will also explore what enforcement of the onsite caretaker and multi-family models would resemble.
- Data Analytics: To respond to multiple Council Member requests for additional data analysis, Data Analytics will lead the preparation of an additional analysis that focuses on the impact of STRs. The first step will be to partner with the City Controller’s Office to see if there are additional STR addresses that can be included in the analysis. Data Analytics will coordinate with Dallas Police Department, Dallas Fire-Rescue, Dallas 311, and Code Compliance regarding a potential analysis.
- Certificate of Occupancy: Several of the questions Council Members asked would have implications on how the City issues Certificates of Occupancy. Development Services will work with Code Compliance and the City Attorney’s Office to explore the implications and possible fee study impacts of such changes. If these residential structures are mandated to have a Certificate of Occupancy, Development Services will need to establish a processing and inspection fee, inspection strategy, training, outreach, metrics, and business workflows for inspection.
